Harley-Davidson (HOG) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a 13% global retail sales decline, with North America down 10%, EMEA down 23%, and Asia Pacific down 16.5%; net income fell 40% to $119 million and diluted EPS was $0.91, down 34%.

• Operating income dropped 49% to $106 million, with HDMC segment income at $55 million (down 69%) and LiveWire posting a $26 million loss; HDFS operating income rose 29% to $77 million.

• Dealer inventory was reduced by 13% sequentially, with further reductions planned to support dealer health and prepare for 2025.

• Touring segment in the U.S. gained over four percentage points of market share, with CVO motorcycles seeing double-digit growth.

• Company lowered its full-year 2024 outlook due to macroeconomic and industry pressures, including high interest rates and declining discretionary spending.

Financial highlights

• Q3 consolidated revenue was $1.15 billion, down 26% year-over-year; net income was $119 million, down 40%; diluted EPS was $0.91, down 34%.

• Q3 HDMC revenue was $876 million, down 32%; HDFS revenue was $269 million, up 10%; LiveWire revenue was $4.8 million, down 41%.

• Q3 HDMC gross margin was 30.1% (down from 31.7%); operating margin was 6.3% (down from 13.5%).

• Year-to-date consolidated revenue was $4.5 billion, down 6%; operating income was $610 million, down $190 million; YTD EPS was $4.27, down 8%.

• Cash and cash equivalents at quarter end: $2.2 billion, up $366 million year-over-year.

Outlook and guidance

• HDMC full-year 2024 revenue expected down 14–16% versus 2023; operating income margin forecast at 7.5–8.5%.

• Full-year 2024 HDMC retail and wholesale units now expected at 149,000–153,000, down from prior guidance of 163,000–168,000.

• HDFS operating income projected up 5–10% for 2024.

• LiveWire full-year guidance revised to 600–1,000 units delivered, with operating loss unchanged at $105–$115 million.

• Capital investment for 2024 expected at $225–$250 million.